Allstate’s pre-tax cat loss for current aggregate year reaches $2.387bn after August

Large US insurance firm Allstate has announced an estimated pre-tax catastrophe loss burden for the month of August 2025 of $213 million, which has lifted the total for the current annual aggregate risk period for its catastrophe bonds to $2.387 billion so far.

Allstate had estimated $594 million of pre-tax catastrophe losses for April 2025, then a further $777 million for May, an additional $619 million pre-tax for June, and then a further $184 million for July.

However, for August, Allstate has reported $213 million of catastrophe losses for the month pre-tax, or $168 million after-tax,.

So far, Allstate’s estimated total cat losses for the third quarter of 2025 have reached $397 million, or $313 million after-tax.

As per Allstate, August’s catastrophe losses came from 10 events with approximately 70% of the losses related to three wind and hail events experienced during the month.

This remains a particularly heavy start to the annual aggregate year of Allstate’s catastrophe bonds, in pre-tax overall catastrophe loss terms.

However, it’s important to remember that not all of these catastrophe losses will qualify to erode the cat bond aggregate retentions.

As a reminder, Allstate’s aggregate reinsurance, which is all provided by some of its Sanders Re cat bonds, begins accumulating qualifying losses over the year from April 1st.

As we’ve explained before, with a $50 million per-event retention under the terms of those cat bonds, not all of these pre-tax losses will qualify, as some may have come from smaller events or affected subject business that is not covered under the cat bonds.

Following Allstate’s 2025 reinsurance renewal, which was completed in time for April 1st, the aggregate Sanders Re cat bonds now sit above an attachment level of $4 billion for this current risk period.

Therefore, we assume that while a chunk of the aggregate retention has likely been eroded by losses from April, May, and June, the catastrophe bonds will remain some billions away from attaching at this time, due to the much lower losses seen in July and August, we assume.

Lastly, it’s also worth highlighting, that Allstate recently purchased a new US homeowners aggregate reinsurance arrangement that runs for a seven month duration, from June 1st 2025 through December 31st.